New, Out-of-State Investor Interested in Atlanta Real Estate

[Akku Kumar]

Hello!

My name is Akku. I am currently a student at Texas A&M University and I am very new to real estate investing. I want to buy my first property in the Atlanta metro as I plan on moving there for a PhD next year and am specifically looking at multifamily homes but I am having trouble finding good deals. I would appreciate any help with getting started!

Best,

Akku

[Gregory Colton]

Please check dm Akku 

[Patrick C. Bellamy]

Hey Akku,

Starting REI with MFH would be a great opportunity. But difficult to find. The MFH market is very competitive and deals go QUICK! I don't want to discourage you as anything is possible and the more resourceful you are the more advantage you'll have. Networking and really narrowing down specifically what you are looking for is crucial. As a backup to your idea, look into house hacking. That would be a very good alternative to multifamily.

I have a co-worker who does nothing but house hacking and owns several properties with two units per house.  It has been very profitable for him.  

Good luck!

[Akku Kumar]

Thank you so much, Patrick! Two questions:
1. Would you mind explaining what house hacking is for you and your friend? I understand the basic concept but would love to hear your insight as well.

2. Would I be able to get in to contact with your co-worker? If he does kind of what I would like to do, would be a great first contact!

[Michael Dumler]

@Akku Kumar, I concur with exploring house hacking your first deal. This strategy is the most risk-averse and offers easy entry into real estate investing. 

Which university will you be working at? 

I'm happy to connect! I'll shoot you a message. 

[Wale Lawal]

@Akku Kumar

To find good deals on multifamily homes in Atlanta, research the market, network with experienced investors, work with a real estate agent, analyze potential deals using metrics, explore sources like MLS listings, off-market deals, foreclosures, and auctions, consider house hacking, use online tools like Zillow, Redfin, and Realtor.com, and seek professional help.

Good luck!

[Patrick C. Bellamy]

Quote from @Akku Kumar:

Thank you so much, Patrick! Two questions:
1. Would you mind explaining what house hacking is for you and your friend? I understand the basic concept but would love to hear your insight as well.

2. Would I be able to get in to contact with your co-worker? If he does kind of what I would like to do, would be a great first contact!

Sure, house hacking is finding a house that can reasonably divided into two areas allowing you to sublet one side or one floor of the house while also allowing you to live there.  The easiest of these is finding a house with an unfinished basement. This allows you to live upstairs/downstairs while renting out the other. This strategy often will cover most, if not all of the actual mortgage, while you fix up the other half or life there (in your case school). 

Doing this allows you a couple of added benefits, such as being able to put less down on new mortgages if you go with a bank loan as it will be your primary residence.  

Some of the properties I own have rrquired much more down. I have a family and kids and moving frequently isn't ideal for my situation.  

I'm out of the country right now but I will reach out to him when I get back. 

[Akku Kumar]

Thanks so much for all the help!

[Akku Kumar]

If there were a few places in Atlanta that would fit as a good place to get started into house hacking, where would that be? Looking for safe, growing areas that aren't too overpriced yet.

[Michael Dumler]

@Akku Kumar, I recommend establishing your budget first. Once a budget is established, it's easier to rule out specific markets and focus on others. Otherwise, my response may be entirely different. 

Moreover, I'd be mindful of using and defining the word overpriced. For instance, several buyers/investors thought real estate here was overpriced in 2020/2021, yet property values have continued to appreciate. Needless to say, those respective "investors" missed out. 

To reiterate my point, we can remove real estate from the equation and use a business instead. Take Microsoft, for example. On a similar note, many investors considered Microsoft overpriced in 2021, yet we now see that the company is valued at all-time highs. 

Real estate is a long-term wealth vehicle, and overall, I would be cautious about how you define overpriced. As you noted, safe and growing areas should be the primary focus for your potential acquisition. 

[Josh Bowser]

Quote from @Akku Kumar:

If there were a few places in Atlanta that would fit as a good place to get started into house hacking, where would that be? Looking for safe, growing areas that aren't too overpriced yet.

 Kennesaw, Acworth, Woodstock, and parts of Marietta

[Greg Kurzner]

@Akku Kumar

We have worked with 3 house hack/2-4 investors who are just like you already this year and each of them did something relatively different.  It really depends on your list of important criteria.  If you want to schedule a call or virtual meeting to discuss, we would be happy to do that.  

https://calendly.com/gregkurzner